Session 1: Developing and Implementing an Effective Process
This session is an overview of what I think effective workforce planning is and what it entails. It is intended to provide a common definition of the workforce planning process and its objectives, a better understanding of the process itself, some ideas for how the process might be applied when business plans are uncertain, and some implementation hints.
Given that this session is an overview, it is usually appropriate to include a broad array of participants, including both senior line managers and HR staff. At a minimum, attendees for this session should include:
Those HR staff that are responsible for the company’s workforce planning efforts
Senior line managers who are facing critical staffing issues that might be addressed by the initial implementation of workforce planning
HR staff from functions that will typically use the results of the workforce plan (e.g., Recruiting, Staffing, Training and Development)
You may also wish to invite representatives of other areas, including:
Strategic/Business Planning
Finance (especially when Finance is involved in headcount planning or control)
HRIS (e.g., to better understand the quality and availability of HR information that might support the staffing models that will be needed)
HR business partners from units that are not included in the first iteration of workforce planning (e.g., so that they can get an idea of what workforce planning is and how it might apply in their organizations)
Once you have done it a time or two, this section can usually be covered in 90 minutes to two hours.
Here are the key points to make/emphasize in each subsection.
Introduction
Review what the session will cover.
Review the simple definitions.
My very broad definition of “staffing” is a critical point. Staffing can have many definitions. To some, it is a process that begins when there is an opening. To others, it is the process that is used to fill jobs internally (as opposed to recruiting, which fills them externally). It is important to use my definition in order to create a common understanding, even if it is only for the duration of the presentation. I sometimes say that my definition of staffing includes any or all managed movement into, around, or out of an organization—including retention. This broad definition of staffing becomes important later, when we define “staffing issues.” We want to consider all potential staffing issues, not just those that meet some specific, narrow definition.
When you define “issue,” make sure to emphasize that an issue is a specific, measurable difference, not just a “gut feel.” To emphasize this point, I sometimes mention that “a lack of bench strength” is not really a staffing issue because at that level it is neither specific nor measurable. Contrast that with the example of having 10 qualified candidates for an opening but needing 12—that is a specific, measurable difference.
My definition of strategy is the classic one, with one difference: I always add the tag line that it tells us how objectives will be met. It is impossible for anyone to identify the staffing implications of objectives; we can define the staffing implications only for what is going to be done to meet those objectives. To emphasize the point, get the group to define the staffing implications of being the “low-cost producer” of a good or service. You will probably get a long list. Now ask the group which of the things mentioned will really happen. Needless to say, the group members will be unable to answer that—unless, of course, they define what will be done to become the low-cost producer. Once that is determined, staffing implications can be defined.
I usually differentiate between data and information by saying that “data are data” (facts, figures, charts, graphs, and so on); data that you use to make a decision are information. The challenge to the group here is that they should eliminate generating, analyzing, or reporting of staffing data. There are probably at least some staffing-related reports and analyses—perhaps some that are quite extensive—that don’t drive or support decision making (and thus are not information). These are not helpful and should be eliminated.
Developing Workforce Plans
The first slide in this section is intended to generate discussion of what the participants think workforce planning is, what it includes, and why the process is not implemented effectively on a widespread basis (or, for that matter, in your organization in particular).
The next slide states what I think has to be done differently. I sometimes say, “You have to tweak the process to improve efficiency and drastically change the context within which the process is implemented to improve effectiveness.”
The next few slides address the workforce planning process and its objectives. All of this information is included in the first few chapters of the book.
When presenting the definition, stress that workforce planning includes both defining and addressing staffing issues—not just defining them.
When discussing the deliverables, present the second one first (short-term staffing plans), since that is what most participants expect to hear. Then present staffing strategies as an important addition to the process.
The “upside-down T” shows how staffing strategies create the context within which staffing plans should be developed (specifically refer to the space that is at the intersection of the vertical and horizontal bars). In addition, use this slide to introduce the concept of “focus.” Remind participants that the objective is not to include all jobs, just those jobs that warrant a strategic perspective (e.g., widening the stem to include half the scope).
The next slide provides examples of staffing strategies and plans that you can use to cement those concepts—including the difference between them.
The next group of slides describes the workforce planning process.
The first slide includes the basic steps.
The next slide presents a traditional approach—but a wrong one.
Use the next slide to make the point that this is a bad approach. See if the participants can spot what is wrong with it (i.e., that it is not a good idea to compare current supply to future demand).
Use the next slide to provide a “better” approach that includes the effects of turnover and retirement, but state that this process still involves an awkward, iterative approach. If you use this approach, you will get the right answer, but you will need to go through several iterations. Make the point that this not a very effective approach.
Show the “best” approach and make the point that the use of uncontrollable and controllable assumptions can help you get to the answer in one step (as described in the text).
Use the next slide to get participants to think about the context within which the “new and improved” process you just described works best
Changing the Context (the detail for this slide is included in Chapters 3 and 4)
The next slide is possibly the most important slide in the presentation. Use an “instead of this, try this” approach to each bullet point. State why the issue-oriented context works better.
When you cover the bullet point about staffing issues, skip ahead to the next slide to show what a staffing issue might look like.
After you show the staffing issues slide, skip ahead to show where these staffing issues might be found. Make sure to mention that these changes could be found in written business plans, but they could also be found in formal planning discussions and “water cooler chats.” Return then to the original slide.
The last slide talks about measurement. Get the group to identify various measures of staffing. Write on a flip chart whatever you hear. When done, point out that the measures that were identified were largely measures of time, speed, cost, or volume—all of which measure efficiency, not effectiveness. None of them take quality into account (e.g., they measure cost per hire, not cost per “good” hire). Make the point that you are doing the “right thing” (e.g., hiring quality people) when the staffing issues you identified are reduced or eliminated. Measuring the effectiveness of the workforce planning process is discussed in Chapter 23.
Dealing with Uncertainty
The next few slides show how workforce planning can be applied even when business plans are uncertain.
I usually state that of course the workforce planning process we just described (in the presentation) works well when plans are known, but then ask how it can be applied when plans are uncertain.
The next slide lists “alternatives to perfect data” (i.e., what we can do when we do not know exactly what will happen), all of which are described in the text.
The next few slides show the nursing example that is included in the uncertainty chapter of the book. State that while the job category may not fit your organization, the concept itself still applies. Note that these are “build” slides.
Tell the audience that although the varying curve seems random, there are at least three things that we know: the minimum, the mean, and the maximum.
The staffing strategy depicted includes three components. The first (up to the minimum) is a known option where staffing requirements are fixed. Thus, staffing plans to meet that fixed need can be certain.
The second component (minimum to mean) shows a range of staffing needs. Because component 1 always provides 25 FTEs, staffing requirements for component 2 range from 0 FTEs (when only component 1 staff are required) to 15 FTEs (when the patient census hits the mean). The organization was willing to address this level of uncertainty and chose to use its own part-time staff here.
The third component (mean to maximum) is also a range, from 0 FTEs (whenever the patient census is at or below the mean) to 10 FTEs (when the census is at the maximum). The organization wanted to outsource this level of uncertainty and thus elected to use an external staffing agency to meet this need.
Implementing Strategic Workforce Planning
I usually begin this section by stating something like, “No matter how well designed a process is, it is only as effective as its implementation.”
On the “hints” slide, there are two key points:
I define the roles of the various participants, emphasizing that in the long run, workforce planning is a line management responsibility. Between “now” and “then” (i.e., when managers are actually participating fully), there is a large transition role for HR staff (as described in the bullets).
Spreadsheets are absolutely adequate for supporting even some very sophisticated staffing issues and strategies. It is not necessary to buy an expensive package. For most organizations, this will probably be a relief!
The next slide describes obstacles. Be sure to share the blame! When viewing the HR part of this slide, I sometimes say, “We have met the enemy and it is us.”
Finally, share my implementation bias (approach A vs. B). This concept is described fully in the text. Note that these are “build” slides. I think that these slides (and this concept) are among the most important in the entire presentation.
Staffing Model
If you have an actual example of a staffing model, show it now. If not, delete this slide.
Examples
Leave the participants to review the examples. Do not try to present each one.
Remember to leave time for questions.